Packaging Corp of America (PKG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,105,800 | 1,067,400 | 1,435,200 | 1,261,100 | 726,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,404,000 | 3,997,300 | 3,667,100 | 3,607,200 | 3,246,300 |
| Return on total capital | 25.11% | 26.70% | 39.14% | 34.96% | 22.37% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,105,800K ÷ ($—K + $4,404,000K)
= 25.11%
Packaging Corp of America's return on total capital has shown an upward trend over the past years, starting at 22.37% on December 31, 2020, and reaching a peak of 39.14% on December 31, 2022. This indicates that the company has been effectively utilizing its capital to generate profits. However, there was a slight decline in the return on total capital to 25.11% on December 31, 2024, which could signal a potential decrease in efficiency or profitability. Overall, the company's return on total capital remains relatively strong, showcasing its ability to generate returns for its investors with the capital it employs in its operations.
Peer comparison
Dec 31, 2024